Volcker and the Great Inflation: Reflections for 2022

4 days 8 hours ago
The inflationary problems of Volcker’s days and ours are fundamentally linked to the demise of the Bretton Woods system in 1971, when the United States reneged on its international commitment to redeem dollars in gold. This put the whole world on pure fiat money instead, with fateful results. According to Brendan Brown, “Volcker considered the suspension of gold convertibility…’the single most important event of his career.’”

US Existing Home Sales Sink For 7th Straight Month

4 days 8 hours ago
Today we get our first glimpse of the carnage in the housing market from August. With mortgage rates having soared and homebuilder sentiment tumbling (and permits plunging), it should be no surprise that existing home sales were expected to fall for the 7th straight month (-2.3% MoM vs -5.9% MoM in July).

Dollar Sails at Two-Decade High

4 days 10 hours ago
The dollar jumped to a new two-decade high on Wednesday, as a decision by Russia's President Vladimir Putin to mobilise more troops for the conflict in Ukraine rattled markets just before another expected aggressive U.S. Federal Reserve rate hike.

Europe’s Subzero Rate Era Poised to End as SNB Plays Catchup

4 days 10 hours ago
The Swiss National Bank will probably end Europe’s decade-long experiment with negative interest rate policy this week as officials emphatically hike above zero. Economists are split three ways on what to expect on Thursday, with about half surveyed anticipating a 75 basis-point increase -- matching European Central Bank action this month -- to 0.5% while the rest see either a quarter-point less or more than that.

“Dr. Doom” Roubini Expects a ‘Long, Ugly’ Recession and Stocks Sinking 40%

5 days 3 hours ago
Roubini whose prescience on the housing bubble crash of 2007 to 2008 earned him the nickname Dr. Doom, said that those expecting a shallow US recession should be looking at the large debt ratios of corporations and governments. As rates rise and debt servicing costs increase, “many zombie institutions, zombie households, corporates, banks, shadow banks and zombie countries are going to die,” he said. “So we’ll see who’s swimming naked.”
4 hours 8 minutes ago
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